Origami Company Is a Price-Taker and Uses Target Pricing -
How Much Is the Desired Profit for the Year

question 74

Multiple Choice

Origami Company is a price-taker and uses target pricing. Please refer to the following information:
$$\begin{array} { | l | r | r | } \hline \text { Production volume } & 500,000 & \text { Units per year } \\\hline \text { Narket price } & \$ 24.00 & \text { Per unit } \\\hline \text { Pesired aperating profit } & 12 \% & \text { Of total assets } \\\hline \text { Tatal assts } & \$ 12,500,000 & \\\hline\end{array}$$
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How much is the desired profit for the year?

• A) $1,440,000
• B) $11,000,000
• C) $12,000,000
• D) $1,500,000

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Definitions:

Tertiary Bronchi

The third level of branching airways in the lungs, conducting air to specific lung segments.

Primary Bronchi

The two main divisions of the trachea that lead directly into the lungs, facilitating the flow of air.

Secondary Bronchi

The branches of the primary bronchi that lead into each lobe of the lungs, facilitating the transport of air.

Windpipe

Commonly known as the trachea, it's the tube that connects the larynx to the bronchi, providing air passage to the lungs.